Life EstateĪ life estate is a freehold estate where ownership is limited to the duration of some person's lifetime, either the person holding the life estate - the life tenant - or some other designated person. With the fee simple determinable, the original owner has the possibility of reverter - the property will revert back to the owner automatically, without having to go to court or re-enter the land if the condition is not satisfied. With the fee simple defeasible, the original owner has the right of re-entry, but must go to court to obtain it. They differ when the condition is no longer satisfied. Both the fee simple defeasible subject to a condition subsequent and the fee simple determinable require that some condition be satisfied or that an event happens or doesn't happen. At the death of the owner, the estate passes to the owner's heirs.Ī fee simple defeasible estate is an estate in which the duration of ownership is subject to some condition, of which there are 2 types (defeasible means capable of being annulled or voided). The fee simple estate (aka fee simple absolute, fee ownership, estate of inheritance) is absolute ownership of the property and entitles the owner to all rights of the property, which are only restricted by law or private restrictions, such as zone ordinances or covenants.
An estate at sufferance exists when the tenant stays after the lease has expired, in which case, the landlord can expel the tenant at any time. An estate at will is one where a tenant can stay until either the tenant or the owner terminates the possession. For example, a tenant signing a 1 year lease has such an estate in years. An estate for years lasts for a specified duration. Leasehold estates include estate for years, estate at will, and estate at sufferance. A leaseholder has no power to alienate the property (transfer it to others) only her own interest can be transferred if it is allowed by the lease. For instance, the real estate that you buy is usually a freehold estate.Ī leasehold estate lasts for a definite duration.
Many terms define the different interests in real property, and the most central concept is the estate in land, an interest in real property allowing possession either now or sometime in the future for a specific or unlimited duration.Ī freehold estate is one where the duration of ownership is indeterminate, which could be for a lifetime of an individual or an unlimited duration. Anyone purchasing real estate should know what kind of estate is being transferred, because it can severely limit the rights of the new property owner, and will also affect the value of the real estate. A real estate interest can also depend on events or specific actions. Real estate interests vary both in types of interest and in their duration, and whether such interests are transferrable.
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